According to the political business cycle theory, if the Fed wanted to see a President re-elected, prior to the election it might
a. buy bonds to raise interest rates.
b. buy bonds to reduce interest rates.
c. sell bonds to raise interest rates.
d. sell bonds to reduce interest rates.
b
Economics
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If a monopoly wants to sell a larger quantity, it must
A) set a higher price. B) maintain the current price. C) set a lower price. D) implement new technology. E) increase the barrier to entry that protects it.
Economics
The following OLS assumption is most likely violated by omitted variables bias:
A) E(ui Xi) = 0 B) (Xi, Yi) i=1,..., n are i.i.d draws from their joint distribution C) there are no outliers for Xi, ui D) there is heteroskedasticity
Economics